Setup Costs and software leasing  

The software lease agreement is an open-ended contract with a minimum two-year period. The contract is terminable by either party giving three months written notice. The contract is subject to a Service Level Agreement that determines standards, e.g. for turnaround times in respect of IT support, trouble shooting, etc.  

The following hours are included in the initial rollout of the system.

• 20 hours for product setup
• 5 hours on-site training (Users)
• 5 hours on-site training (Administrator)

The following non-cumulative standard support hours are included on a monthly basis subject to the monthly debit amount.

Base Rate	4    Hours
R 500 000 to R 1 000 000	6    Hours
R1 000 001 to R 2 000 000	10  Hours
R 2 000 001 to R 3 000 000	15  Hours

R 3 000 001 to R 5 000 000	20  Hours
R 5 000 001 to R 10 000 000	30  Hours
R 10 000 001 to R 15 000 000	45  Hours
R 15 000 001 to R 25 000 000	60  Hours

R 25 000 001 to +

Dedicated

Additional setup, customisation and administrator training in excess of the above shall be charged at R320 per hour. Standard training and support will be charged at R160 per hour. Our hourly rates are reviewed annually on 01 January.

The rates for the bureau type facility are quoted subject to a detailed analysis determining the appropriate hardware as well as functionality required.

The following rates are applicable to the leasing only option:                    

% Charged

Effective %

first R500,000	R9000.00 (1.80%)	1.80%
R 500 000 to R 1 000 000	1.60%	1.70%
R1 000 001 to R 2 000 000	1.25%	1.48%
R 2 000 001 to R 3 000 000	1.00%	1.32%

R 3 000 001 to R 5 000 000	0.80%	1.11%
R 5 000 001 to R 10 000 000	0.70%	0.86%
R 10 000 001 to R 15 000 000	0.60%	0.74%
R 15 000 001 to R 25 000 000	0.55%	0.63%

R 25 000 001 +

0.50%

0.60%

The rate schedule is based on a sliding scale. Each band in excess of the base rate is discounted further up to the bulk rate of 0,5 % in excess of R30.000.000 monthly premium income. The effective rate means the average rate at the maximum of any band.